It’s probably safe to say that just about everyone was ready for 2021 to begin, for a number of reasons. However, let’s take a moment to reflect on what an incredible year 2020 was for real estate.
After a month of two of normalcy to start the year, the COVID-19 pandemic spread world-wide. Less than a year later, we’ve learned just how resilient the real estate industry can be, especially here in Colorado. While the pandemic may have shifted typical buying/selling cycles, we still saw incredible growth in certain areas as mortgage rates reached record lows, and demand at record highs. By the end of the year, home prices had appreciated significantly as inventory continued to drop – demand to live in Colorado ever-growing it seems.
At 8z, we were able to adapt quickly, having the technology in place to serve clients with a suite of virtual agent services. The use of 3D Tours and virtual open houses, electronic document signing & transfers, and being able to meet ‘face-to-face’ over Zoom are just a few of the tools that allowed us to excel.
New Year, Same Trends?
So, what can we expect to see in 2021? In short, more of the same. Hopefully fewer disruptions with COVID-19, but the same real estate factors that led to record sales volumes in 2020 should continue into 2021.
Our experts with 8z Mortgage believe that interest rates will remain low through 2021 and possibly beyond. This creates great opportunities for buyers entering the market, even as house prices continue to increase, by allowing them to afford the higher prices. They also expect residential real estate in non-coastal, high-priced markets – like Colorado – will continue to perform well.
Another interesting perspective on the outlook for 2021 comes from the MBA, or Mortgage Bankers Association.
“2021, particularly the second half, should be a year of continued purchase growth and slowing refinance activity,” according to Mike Fratantoni, Chief Economist and Senior Vice President for Reach and Industry Technology. “As long as the spread of the pandemic is brought under control, the economy should expand around 3 percent next year, allowing the job market to improve, incomes to rise, and home sales to meaningfully increase.”
It’s important to note that some of these predictions are nation-wide, and the Colorado market is one of the strongest in the country. And like any other real estate market, ours is largely impacted by three factors: inventory, interest rates, and the overall job market. Especially along the Front Range, inventory continues to remain below consumer demand, as has been the case since 2013. Interest rates will also remain low for the foreseeable future, which creates incredible opportunities for buyers, or those looking to refinance. And as Fratantoni stated above, the job market should improve further, especially as vaccines help bring the pandemic under control.
All of this points to continues demand and appreciation in 2021.
Call, text or email if I can be of assistance in any way. I'd love to be of help.
Jenny Kipp, Authentically Guiding You Home
8z Real Estate
5-Star Zillow Reviews
8z Top Producer